Thursday, 11 April 2013

Low and sustainable growth is the way forward for air cargo, claims UK logistics director

Speaking to Air Cargo week this Monday, Matthew Marriott, commercial director of Hellmann Worldwide logistics UK, stated that leaders in the world cargo industry must recognise that the state of the economy may be here to stay.

According to Mariott, rather than looking for quick wins and short-lived peaks in demand, the industry should be “accepting low growth, and consolidating the internal business structure that makes boom-and-bust economics less likely” in order to regain market confidence.

Marriott pointed to manufacturers and exporters taking advantage of currency fluctuations as partly responsible for the “sudden dips and false dawns” in the economy since 2008. He commented: “On the face of it, this all sounds fine […] but, within a struggling or depressed sector, this approach can hinder recovery”.

The logistics director’s comments come at a time when other industry experts are claiming that sea freight is becoming a stronger competitor to air freight as a means of transporting goods worldwide.

Market analysis company Analytiqa reported today that demand for sea freight has risen since International Economic Indicators suggested that the world economy bottomed out in the third quarter of last year.

While air cargo demand has not reflected this recovery to the same extent, volumes were still up by 2% in February compared to the previous year. Moderate growth for the sector is forecast across the course of the year but IATA has warned that improvements cannot be taken for granted.

Sources: Air Cargo Week, Analytiqa

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